|Fire-fighting is dangerous|
You may have grumbled that someone must be making out like a bandit as you continue to pay your mortgage.
A funny / scary story in the WSJ [Negative Rates Around the World, Duxbury & Gauthier-Villars, April 14, 2016] relates the personal story of a Danish bank mortgage customer being paid by his bank to have a mortgage.
Here are some choice sections from the WSJ article:
AALBORG, Denmark— Hans Peter Christensen got some unusual news when he opened his most recent mortgage statement. His quarterly interest payment was negative 249 Danish kroner.
Instead of paying interest on the loan he got a decade ago to buy a house in this northern Denmark city, his bank paid him the equivalent of $38 in interest for the quarter. As of Dec. 31, his mortgage rate, excluding fees, stood at negative 0.0562%.
“My parents said I should frame it, to prove to coming generations that this ever happened,” said Mr. Christensen, a 35-year-old financial consultant, about his bank statement."And some of the consequences:
Prices of owner-occupied apartments have been rising. In Copenhagen, prices were 14.5% higher in the fourth quarter of 2015 than in the year-earlier period, compared with a 5.5% increase in 2014, according to the Association of Danish Mortgage Banks.
In Stockholm, prices rose 17% in 2015, following a 10% increase in 2014, according to price-tracking company Svensk Maklarstatistik AB.This isn't going to end pretty.